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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (13956)	2/10/1998 1:48:00 PM
From: Tommaso	Read Replies (2) \| Respond to of 18056

From my post # 815 to the Kahuna Thread last June: "What worries me is that a lot of people, every month, just have their retirement contributions put into mutual funds, or put money into IRAs, and this could lead to even more unrealistic valuations until there finally is a crash. Sooner or later things will at least stagnate, and as soon as ten percent of investors change their minds and start taking money out of stocks, funds will have to sell stock, and the market will disinflate." What worried me then has happened, and seems continuing to happen. With the Federal Reserve allowing M3 to expand at close to 10% annual rate there continues to be a credit bubble that is making possible the transfer of funds into the stock market instead of paying down outstanding loans. I also began to worry some weeks ago that even in 1929 there was a final several months of additional frenzied speculation after a long see-saw period. I think the Federal reserve as repeated its errors of the 1920s. It remains to be seen in congress repeats theirs and takes protectionist measures. A year ago I really did not think that there was any reason to make the 1929 comparison, but I do now.